The $HUI:GLD ratio has been an excellent leading indicator for us during the bull market and again in the current bear market. Until this long term trend is reversed, risk belongs to buyers.

Summary

Long term – on major sell signal since Mar 2012 when $HUI was at 550.
Short term – on sell signals.
Gold sector cycle – down as of 8/8.
COT data suggests a tradable bottom is not in yet for the metals.

DisclosureWe
do not offer predictions or forecasts for the markets. What you
see here is our simple trading model which provides us the signals
and set ups to be either long, short, or in cash at any given
time. Entry points and stops are provided in real time to subscribers,
therefore, this update may not reflect our current positions
in the markets. Trade at your own discretion.